10276-10500 CONTINUES TO BE IMMEDIATE RANGE

10276-10500 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices reversed intraday gains to end with cuts of 0.2%-0.7% after interest rates reached fresh multiyear highs following the release of the latest Federal Reserve minutes.

The minutes showed the Fed sees increased economic growth and an uptick in inflation as justification to continue to raise interest rates gradually.

The benchmark 10-year note yield initially fell from session highs after the release, but recovered to reach a fresh four-year high above 2.95%.

IHS Markit flash US composite PMI hit 55.9, its highest level in more than two years. Existing home sales fell for a second straight month in January.

In Europe, FTSE and CAC gained 0.5% and 0.2% respectively whil DAX and Italy lost 0.1% and 0.1% respectively. Manufacturing and services PMIs out in the euro zone showed growth in the region slowed down in February.

AT HOME

Benchmark indices ended with gains of about four tenth of a percent, breaking three-day losing streak. Sensex added 141 points to settle at 33844 while Nifty finished 40 points higher at 10400. BSE mid-cap index ended flat while small-cap index lost 0.2%. BSE IT and Teck indices soared 2.2% and 1.8% respectively to become top gainers among sectoral indices while Metal and Healthcare indices were the top losers, down 1.3% and 1.2% respectively.

FIIs net sold stocks worth Rs 1214 cr but net bought index futures and stock futures worth Rs 627 cr and 1240 cr respectively. DIIs were net buyers to the tune of Rs 1375 cr.

Rupee appreciated 3 paise to end at 64.75/$.

OUTLOOK

Today, Shanghai has opened more than one percent higher after Lunar New Year holidays. Nikkei and Hang Seng are trading with cuts of more than a percent and SGX Nifty is suggesting about 50 points lower start for our market.

Readers would recall that after Nifty broke immediate support of 10398, we have been working with the possibility of retest of 10276 bottom made on 6th February. Nifty, after touching a low of 10302 on Monday, has recovered to 10397 as on yesterday but is set to open below 10350 today.

10276 continues to be crucial support to eye, a decisive breach of which can lead to next leg of correction and 200 DMA, placed around 10085, would be the next major support if that happens. 10500 continues to be immediate hurdle on the way up, a crossover of which is required for a fresh upmove.

Grasim, Titan and Bajaj Finserve will replace Aurobindo Pharma, Ambuja Cement and Bosch from April 2.